AMC Announces Plans to Significantly Upgrade its Theatres

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Fri, 11/08/2024 - 09:03 -- Nick Dager

AMC Theatres today announced AMC’s Go Plan, an ambitious investment in the future of moviegoing at AMC. Through AMC's Go Plan, AMC expects to invest between $1 billion and $1.5 billion over the next four to seven years, greatly enhancing its locations in the United States and Europe. With AMC's Go Plan, AMC will provide guests with an even greater selection of premium experiences, immersive sight & sound enhancements, more comfortable seating and upgraded theatres, as well as other initiatives.

AMC Theatres today announced AMC’s Go Plan, an ambitious investment in the future of moviegoing at AMC. Through AMC's Go Plan, AMC expects to invest between $1 billion and $1.5 billion over the next four to seven years, greatly enhancing its locations in the United States and Europe. With AMC's Go Plan, AMC will provide guests with an even greater selection of premium experiences, immersive sight & sound enhancements, more comfortable seating and upgraded theatres, as well as other initiatives.AMC's Go Plan includes investing in some of AMC's best and most productive theatres. In addition to recent and current renovations at AMC flagship locations like AMC Lincoln Square 13 and AMC Empire 25 in New York, and AMC Burbank 16 in Los Angeles, AMC has a long list of high-performing theatres that could receive significant seating and other upgrades as part of AMC's Go Plan.

Similarly, for Odeon Cinemas in Europe, there are opportunities to develop a meaningful number of additional Luxe Cinemas, especially in the UK.

On the premium moviegoing front, AMC's consumer data makes it clear that moviegoers are increasingly seeking out premium large format experiences. Through AMC's Go Plan, AMC expects to greatly expand its PLF, and extra-large format offerings, as well as expand the number of Laser at AMC auditoriums. This includes Imax with Laser at AMC, Dolby Cinema at AMC, Prime at AMC, and AMC's new XLF format – XL at AMC.

The timing and extent of AMC's Go plan will be calibrated according to the box office recovery trajectory and AMC's available capital, liquidity levels, and leverage ratios.

Components of the plan include:

Not so long ago, 42 of AMC's 223 global Imax locations offered the superb Imax with Laser product, including laser projection, enhanced 12 channel sound system and significant recliner or plush rocker seating upgrades. Through AMC's Go Plan, the number of Imax deployments will increase, and Imax with Laser could be installed in more than two-thirds of AMC’s Imax auditoriums.

Through AMC's Go Plan, the number of Prime at AMC PLF houses could increase from 31 to up to 100.

The AMC Go Plan would also significantly increase the number of Dolby Cinema at AMC locations.

At the end of September, AMC had 2,137 auditoriums in the United States that featured Laser at AMC. The Company expects to double or triple that count over the next seven years.

Finally, AMC's Go Plan also includes the expected roll out of its newest initiative, XL at AMC, for 200-250 auditoriums, in addition to the 68 XL auditoriums that AMC already has in Europe. XL at AMC will be offered in auditoriums where the screen is at least 40-feet wide. All XL at AMC auditoriums will feature 4K laser projection on the biggest non-PLF screen in the building. Every XL at AMC auditorium will receive a branded entry, and easy-to-identify branding on the AMC website and mobile app.

AMC chairman and CEO Adam Aron said, "With AMC's Go Plan, AMC is officially going back on offense. First and foremost, that means investing in the theatrical experience in our movie theatres, both at AMC locations in the U.S. and Odeon Cinemas in Europe. This Go Plan is AMC's most aggressive, forward-looking theatrical investment initiative this decade, and will greatly enhance the moviegoing experience for millions of our U.S. guests. And, of course, we will manage the timing of our Go Plan investments consistent with the prudent management of our debt levels, leverage, and liquidity."